India's GeM Goes Global: UK Firms Can Access ₹3,800 Crore Procurement

India is set to introduce global tendering features on its Government e-Marketplace (GeM) portal, marking a significant shift in public procurement policy. This development follows the successful conclusion of the India-UK Free Trade Agreement (FTA) and aims to integrate international suppliers into the country’s growing procurement ecosystem.

The GeM portal, widely used by central and state government bodies for acquiring goods and services, currently restricts tenders to domestic suppliers. With the introduction of global tendering, international companies, including those from the United Kingdom, will soon be eligible to participate in government tenders across India.

New Features Aim to Streamline Procurement

In addition to global tendering, a 'rate contract' option will be added to the portal. This will allow government departments to procure goods and services at pre-approved prices for a fixed period, minimising the need for repetitive bidding and improving operational efficiency.

The government has ambitious targets for the platform, projecting transaction volumes of ₹7,00,000 crore in FY26, up from ₹5,42,000 crore in FY25. Currently, 40% to 50% of India’s annual government procurement is carried out through GeM.

FTA Grants UK Firms Access to Indian Tenders

According to a policy paper released by the UK government, India has provided “legally guaranteed access” to its government procurement market under the terms of the FTA. As a result, British companies will now be able to bid on around 40,000 Indian government tenders each year, with an estimated value of ₹3,800 crore.

This access could offer a significant growth opportunity for UK-based suppliers seeking to engage with India’s vast and varied public sector demand.

Read More: India-UK FTA Provides UK Firms Access to £38 Billion Central Govt Procurement Market. 

Concerns Over the Impact on Indian MSMEs

While the move signals openness, it has raised concerns among policy observers. The Global Trade Research Initiative (GTRI) has warned that the inclusion of UK firms in Indian tenders may crowd out domestic micro, small, and medium enterprises (MSMEs), which currently benefit from preferential access to such contracts.

Under the agreement, UK firms with at least 20% UK content will be classified as class two local suppliers under the Make in India policy. This status allows them to compete with Indian firms on more favourable terms, potentially diluting the support structure designed for MSMEs.

Conclusion

As India integrates more deeply into global trade frameworks, the GeM platform’s evolution reflects a broader commitment to transparency, efficiency, and competitiveness. However, ensuring that domestic enterprises, especially MSMEs, are not disadvantaged remains a pressing consideration.

The rollout of global tendering features on GeM marks a step forward in India's procurement modernisation, but the long-term impact will depend on how effectively policymakers balance global access with domestic economic inclusion.

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